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Sunday Review: 2 Biotech Picks & Some Week 1 Fantasy Football Sleepers 23 comments

"Pressure is something you feel when you don't know what the hell you're doing." - Peyton Manning

The day has finally arrived and the first NFL weekend of the year is here. We are going to provide a couple of stock ideas for the week ahead after Friday's rout in equities. We also are going to look at some NFL "sleepers" this week for those investors that like some action on Sundays when the markets are closed within the confines of Fantasy Football.

If a small concern called Egalet (NASDAQ:EGLT) is not on your radar yet, it probably should be. The company has an October 14th PDUFA date for its compound ARYMO ER which provides an abuse resistant way to treat chronic pain. This has been a major focus area for doctors as well as politicians given the huge increase in heroin and opioid overdoses across the nation over the past few years which has garnered a large increase in media attention.

In early August, an Ad Comm panel voted overwhelmingly to approve this drug in a 18 to 1 vote, so it is hard to see how ARYMO ER will not be approved just over four weeks from now. These small concerns can start to run up a few weeks in advance of PDUFA dates or key trial results. Look at Novavax (NASDAQ:NVAX), a vaccine play recommended many times on these pages, which was one of the few small biotechs to be up nicely again on Friday.

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Results from a critical Phase III trial for its RSV vaccine candidate should be out by the end of September and the market has anticipated as of recently these results will be positive. Egalet might be a good trade idea in the same vein. Cantor Fitzgerald reiterated its Buy rating with a $21 price target on Egalet on Thursday. The stock currently trades just above $7.

Note: To celebrate my 50th birthday this weekend as well as the long overdue start of the NFL season, I am giving out free two week trials to the Insiders Forum through the final of the Monday Night Football game.

This offering is focused on putting together and maintaining an optimized portfolio of 15 primarily small and mid-cap stocks that are both attractive on a valuation basis but also seeing recent significant insider buying.

We have added one stock a week since the Forum's launch in late June. The Insiders Forum has grown already to the eighth most subscribed to service among over 60 MarketPlace services...


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